Good afternoon, and welcome to the Digital Turbine fiscal 2019 first quarter results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Brian Bartholomew, Senior Vice President of Capital Markets and Strategy. Please go ahead.
Thanks, Kate. Good afternoon, and welcome to the Digital Turbine first quarter fiscal 2019 earnings conference call. Joining me on the call today to discuss our results are Bill Stone, CEO, and Barrett Garrison, our CFO. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements. These forward-looking statements are based on our current assumptions, expectations, and beliefs, including projected operating metrics, future products and services, anticipated market demand, and other forward-looking topics. Although we believe that our assumptions are reasonable, they are not guarantees of future performance, and some will inevitably prove to be incorrect. Except as required by law, we undertake no obligation to update any forward-looking statements.
For a discussion of the risk factors that could cause our actual results to differ materially from those contemplated by our forward-looking statements, please refer to the documents we file with the Securities and Exchange Commission. During this call, we will discuss certain non-GAAP measures of our performance. Non-GAAP measures are not substitutes for GAAP measures. Please refer to today's press release for important information about the limitations of using non-GAAP measures, as well as reconciliations of these non-GAAP financial results to the most comparable GAAP measures. Now it is my pleasure to turn the call over to Mr. Bill Stone.
Thanks, Brian, and thanks to all for joining us today. I want to start with our stated goal, which is to build a growing and profitable business. Our June quarter was our fifth consecutive quarter of positive adjusted EBITDA with 46% revenue growth year-over-year despite several headwinds. I'm going to break my comments out into three areas. First is some commentary around our new agreement with Verizon. Second is a recap of the June quarter. Finally will be some operational commentary around our three growth levers of devices, new products, and our media business. First, I'm pleased to announce we have reached agreement with Verizon on a new four-year deal that will go through August 2022 and are in process of executing the agreement.
This new agreement will not only cover our current products, but also includes new products that Verizon is interested in, such as Single Tap, Folders, notifications, and post-install actions. We expect this deal to be accretive to revenue and gross profit over the term of the contract. There are incentives for us as we achieve higher revenue tiers to improve our revenue share and gross margin percentage. The lowest revenue tiers are identical margins to our prior agreement. In other words, there are no commercial terms that are unfavorable to our prior agreement, only upside opportunities for us. We are also exploring additional product collaboration opportunities at Verizon's request that would be incremental to this agreement. We are processing some minor administrative details on the agreement and anticipate filing an 8-K in advance of the expiration of the current agreement next week.
Our June quarter finished at $22.1 million in revenue, up 46% over prior year, and $0.2 million in positive adjusted EBITDA. If I break out the headwinds and tailwinds from the quarter, on the headwind side was disappointing sales of a key flagship device. Our higher-margin international revenue partners performed below our expectations. Finally, a delay by one of our U.S. partners for a one-time expansion of Single Tap capabilities with a major social media platform. On the tailwind side, I was pleased to see our revenue per device or RPD in the U.S. of $2, which compares to $1.32 for the same quarter last year. This is a fundamental health metric of our business that showcases advertiser demand for our platform and a key driver of growth.
Other tailwinds included very positive momentum with AT&T, contribution from other products that was less than 5% of revenue a year ago, and now over 15% of revenue, strong results from our large social media partner and large U.S. operator. Turning to the current and future quarters, we see three main growth drivers from our platform: more devices, more products, and more and deeper media relationships. On devices, we added 24.6 million devices in the June quarter, which now brings us to over 175 million devices in our base. We have recently signed contracts with seven OEMs that represent an annual opportunity of 15 million incremental devices. Some of these have already launched in the September quarter, and all will launch this calendar year. I'm excited about these launches as they will be with multiple versus just a single product.
The pipeline is also very encouraging with numerous high-profile OEMs very deep in the pipeline process. We have also received greater-than-expected inbound interest for expansion of our platform into other types of screens, our product and R&D teams are exploring moving beyond just smartphones. On our second growth lever of products, as I mentioned earlier, a year ago, 95% of our revenues from our O&O business were from Dynamic Preloads. While that product continues to experience revenue growth, its overall contribution has declined now to 85% as we see ramp in our other products. In particular, Single Tap, folders, and post-install actions are showing nice growth. Barrett will comment on the margins in his remarks, over the longer term, as these products ramp, this should be a benefit to our gross margins.
We see this as a growth driver for all partners, but in particular, a growth driver for our existing U.S. partners where their device growth may be muted. While still early days, we're seeing conversion lifts of 50% on SingleTap, proving that a better user experience drives better results for advertisers. In particular, we are excited about what we are calling WAP-to-app, where a consumer can be on a mobile website, such as ESPN or Delta or Yelp or the like, and get a richer native application driven to their device via SingleTap while staying in the mobile web if they so choose. This drives higher engagement for the app provider while still not disturbing the consumer experience. We also have some encouraging engagement results from our post-install actions, where we're seeing 30% lift in engagement, which in turn drives higher revenue per slot and revenue per device.
On our media business, we continue to grow our revenue per device as media partners are seeing positive returns on investments from their Digital Turbine spend. We are seeing an encouraging trend with mobile media. As most of you know, the mobile media industry is growing at greater than 30% compound annual growth rate, but we are seeing the law of diminishing returns for advertisers spending on the very large platforms that are now no longer generating the same ROI for them. They're seeing that their incremental dollars are better spent on other platforms such as Digital Turbine versus continuing to spend more dollars on the same platforms. In the United States, Digital Turbine is now the number three distributor of Android applications, only behind Facebook and Google.
We saw a number of new advertising brands in the quarter begin spending on our platform, such as Adidas, The Wall Street Journal, Sirius XM and Kroger, just to name a few. Our focus areas in the media business are to continue include scaling our demand outside the United States, leveraging our new inside sales team to help with the long tail of app providers, and working on numerous new partnerships that help us scale versus only going direct. In particular, I've been excited to see our expansion of our Oath relationship outside of Verizon and is now contributing meaningful revenue with our other global partners. Finally, before I turn it over to Barrett, oftentimes on earnings calls, it can be just about the numbers, but I wanted to conclude my remarks today with my increasing enthusiasm regarding our improved focus and execution.
The past six months have been largely consumed with the Content and AMP divestitures, finalizing the European Union GDPR compliance requirements, and finalizing our own Sarbanes-Oxley compliance. I want to thank our team for the hustle on completing these things simultaneously, as they were material undertakings for a small global public tech company. Our organization has now been able to turn its attention 100% to the growth levers described earlier. I'm excited with the execution improvements over the past 60 days I've seen as a result. It's setting us up nicely as we talk about the numbers for the future. With that concludes my prepared remarks. I'll turn it over to Barrett to take you through the numbers.
Thanks, Bill, and good afternoon, everyone. Before we go into a more detailed overview of the numbers, I wanted to provide a couple updates. First, we recently announced the closing of two divestiture transactions with our advertiser and publisher business and our content and pay business, and the teams are now in the process of fully transitioning these business to their new owners. As a reminder, these non-core divestitures are expected to enable greater organizational focus on our higher growth and higher margin O&O business. Secondly, I wanted to provide an update on the progress with the SEC as it relates to the previously disclosed internal control matter. We are finalizing a proposed settlement of this matter with the staff of the SEC, which is subject to the final approval of the SEC.
We expect to provide an update or disclose the final resolution before our next quarterly report in November. We have included the general parameters of the proposed settlement in our 10-Q filed today, which includes a settlement of $100,000 payable by the company. Based on the proposed settlement terms, the company does not expect this matter to have a material impact on its operations or financial position or any impact on historical financials. This matter and internal controls are very important to the company, and I am pleased to be finalizing this matter and proud of the diligent efforts of the team to now be SOX compliant. Now let me turn to the financial performance in the quarter. As a reminder, the results of our divested businesses are treated as discontinued operations for all periods presented in our financials.
My comments today will refer to results on continuing operations unless otherwise noted. All of our comparisons are also on a year-over-year basis, unless noted otherwise. Revenue of $22.1 million in the quarter was up 46%, and as Bill referenced, we delivered this growth despite disappointing sales of flagship device launch against expectations and a delay by one of our U.S. partners for a one-time expansion of SingleTap capabilities on a major social media platform. However, these headwinds were offset by other improvements on the platform, including an increased revenue contribution per device and new product revenues gaining increased traction. As Bill referenced, while our core Dynamic Preloads business is growing nicely, we generated a greater portion of our revenues from other products.
In the quarter, other product revenues made up 15% of total revenues as compared to less than 3% the same quarter last year, illustrating the progress of the new products added to our platform. Turning to gross profit and margins, revenue growth enabled non-GAAP gross profit dollars to increase by over $1.3 million year-over-year to $6.9 million in the quarter. Non-GAAP margin was 31% in Q1, down from 37% in the prior year. Margins in the quarter were lower year-over-year, driven largely by two factors. First, one of our largest, fastest-growing U.S. carriers has a higher revenue share as compared to the same time last year that they're growing over. This revenue share is based on cumulative volume thresholds achieved at the end of calendar year 2017.
In addition, certain new incremental product revenues that I referenced earlier have a revenue-sharing component with one of our major carriers that had a negative impact on overall margins based on their existing revenue share structure. Let me leave the discussion on margins by noting that while we are encouraged about our opportunity to expand margins overall, given our current revenue mix, we would expect similar margins as generated in Q1 over the near term. As a reminder, gross margin rates can be sensitive to changes in partner mix and revenue type, these fluctuations may vary from quarter to quarter. The opportunities for margin expansion will depend on the timing of launching and ramping higher-margin partners and growth in our new product revenues. During the first quarter, total operating expenses from continuing operations were $7.6 million, compared to $6.7 million in the prior year quarter.
As a reminder, since we are now reporting our divested businesses under discontinued operations, all of our shared and corporate expenses are being allocated to continuing operations. Cash expenses in the quarter were approximately $6.7 million, which were down on a sequential basis from Q4 cash expenses of $7.6 million, despite incurring higher annual accounting and Sarbanes-Oxley costs in the quarter. During Q1, total adjusted EBITDA was positive $0.2 million, up from a loss of $0.1 million in the first fiscal quarter of 2018. Non-GAAP adjusted net loss in the quarter was $0.6 million loss from continuing operations or negative $0.01 per share, as compared to a net loss of $1.1 million or negative $0.02 per share in the first quarter of 2018.
Our GAAP net income from continuing operations for the first quarter was positive $1.5 million or $0.02 per share based on 76.2 million weighted shares outstanding, compared to a net loss of $4.1 million or negative $0.06 per share loss for the first quarter of 2018. Included in our GAAP net loss for the quarter is a recorded gain of $3.2 million from the impact of the change in fair value of derivative liabilities resulting from our convertible note, which is highly sensitive to the company's stock price. As a reminder, the derivative liabilities on our balance sheet will fluctuate as our stock price moves and may have a material impact on our reported GAAP financials. Moving to the balance sheet. We finished the quarter with $8.6 million in cash, which was ahead of our internal expectations.
With continuing operations consuming about $2.7 million in negative free cash flow during the quarter, largely driven by timing of working capital changes due to revenue growth in the quarter, combined with a reduction of certain fiscal year-end payables. Discontinued operation consumed about $1.3 million in negative free cash flow from certain one-time transaction costs and working capital changes as we transition these divested businesses. The debt levels remained unchanged from prior quarter. There were no conversions on our convertible notes during the quarter, the gross principal amount of the original $16 million notes ended at $5.7 million at the end of the quarter. Let me turn to our outlook. We currently expect Q2 revenue of approximately $23 million, representing a projected year-over-year growth of about 45%, and expect sequential improvement to adjusted EBITDA.
With that, let me hand it back to the operator to open the call for questions. Operator?
We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. The first question comes from Mike Maloof of Craig-Hallum Capital Group. Please go ahead.
Great. Thanks for taking my questions. Congratulations on getting Verizon over the finish line. It's well done.
Great. Thanks, Mike.
I wanted to know if we could just sort of explore Verizon just a little bit. If I understand what you said, if you were to keep the revenues basically flat with Verizon, you would experience basically the same margins that we have, and that any incremental growth adds to the gross profit margin. Is that how I should read it?
Yeah. Mike, how I think about it is that the new deal is identical to the existing deal if nothing changes. As we add new products, the opportunity for us to hit higher revenue tiers would result in higher gross margins for us. It's really a more holistic deal. Rather than just think about the past over the past 4 years and rather thinking about the next 4 years and the things we want to do, how we can think about accreting the margins of our current products as well as our new ones to achieve higher revenue tiers.
Okay, that's a lot different than how you were set up from the beginning of Verizon, where as your revenue grew to different tiers, your gross profit actually would go down.
That's right. I almost like to think of it as reverse revenue tiers, is how we were kind of referring to it internally. It really is contemplating now a much-expanded product relationship with Verizon than what we had had in the rearview mirror.
Got it. That's helpful. With regards to SingleTap, can you just give us an update on where we are with that rollout? You mentioned that it negatively affected the June quarter based on a particular rollout, but it sounded like it was a one-time rollout, so I'm a little confused by that.
Yeah, sure. There's really two elements of SingleTap. One is our integration with a large social media platform and a large operator here in the U.S., and that continues to grow nicely. With that, we had an opportunity for a one-time event with them to be able to go out and do something that would generate basically a one-time opportunity for us that was material. That opportunity is still out there. We had thought that was going to come in the June quarter, but it did not. That was a little bit disappointing to us, but the opportunity still remains to go do that as we go out through the remainder of the fiscal year. The second part of SingleTap is integrating with other media partners and platforms, and that is live on a number of operators. It is not yet live on Verizon and AT&T.
We expect that to happen in the current quarter, and that'll help accelerate the second part of our SingleTap offering.
Okay, great. Just one final question. With regards to América Móvil, I know that you were putting your APK or getting it installed at Samsung. Is that ongoing now, so you can start to jumpstart that? To what extent, if you can get Samsung to install this, could they install this on all their phones to make it sort of ubiquitous, so you could cover basically worldwide coverage?
As far as América Móvil goes, we're working on expanding some new technology with them that's going to dramatically improve the install rates and performance, which, for you as well as others that have followed the story for a while, know that's been a disappointment. As many heard at the Analyst Day, América Móvil commented on that directly, that they're excited about some of those technical improvements that will improve the install rates. Regarding Samsung, I'm very excited and bullish about the opportunities that we've got with them globally right now. Stay tuned for more.
Okay, great. Thanks a lot.
The next question is from Darren Aftahi of Roth Capital Partners. Please go ahead.
Good afternoon. Thanks for taking my questions. Also, congratulations on the Verizon deal. Wanted to follow up on a couple things from the prior questions. On your sort of one-time opportunity with the social platform, is that something you can kind of couch as being a calendar 2018 event, or has that kind of been discounted, you can't really gauge the timing of when that's going to happen?
What we've done in our forward-looking guidance, Darren, is we've taken it out. If that happens, it would be upside for us. We still think there's an opportunity there, would rather hope for the best, plan for the worst kind of thing on that one-time opportunity. It's taken out of our guidance, but it's still very much on the table.
Fair enough. With your newer product lineup, as you complete the Verizon deal here in the near future, can you just strategically talk about which of your new products you feel like will resonate with AT&T and Verizon more quickly? In conjunction with that, I know you guys noticed the 1,000 base improvement in new product revenue. Can you just kind of give us a sense for where you see that mix going over the next six months?
I'll break it out into three categories. I think in terms of very short-term performance, I'm really excited about the engagement results we've seen on post-install actions. That's the type of thing where all of us would see, for example, we have a Starbucks app on our phone, and we'll see a notification that says, "Hey, come on in and get a free latte. It's your birthday." Or what those kinds of things were. You might not have remembered you had a Starbucks app on your phone, and we see tremendous lifts in engagement for that. That in turn drives better revenue per slot and revenue per device performance. We're really in the process of scaling that real time right now. That's quite encouraging in the very short term.
In the midterm, we're excited about the opportunities with AT&T and the Time Warner merger as it relates to things like our folders product. Between DIRECTV, AT&T, and Time Warner have nearly 200 different applications. They got to think about how to get the right apps to the right people at the right time. There's a tremendous opportunity for us to add value there with our folders product with them and as well as with Verizon and Oath and others. I think I'm excited about that in the midterm. Long term, I'm most excited about SingleTap. We're seeing some very encouraging results, now the next step is to get that launched on Verizon and AT&T in the current quarter, start seeing that grow. I don't expect to see that deliver material results for us in the September quarter.
As we go forward into the next calendar year, I'm really excited about the prospects there.
Got it. Just a couple more. On the 15 million incremental devices by the end of the year with the 7 OEMs, can you just talk about the context? Is that being influenced by your Qualcomm relationship you announced earlier this year?
It's not really specifically with Qualcomm, but it is being driven by our business development activities in Asia, which we've been pretty aggressive in Korea, China, and India. Really, this is about cutting our teeth with these new OEMs. It's a new distribution channel for us. They have some different requirements. It's obviously international. We want to learn from all of our new products with them, and I think it sets us up really nicely for some of the much higher-profile players in the region, which I mentioned in my comments, we're really deep in the pipeline process. I'm excited about us really getting to cut our teeth with these longer tail OEMs, albeit with material device volumes. We're talking about 8 figures of device volumes. It's really setting us up now to learn to scale when some of the bigger boys come on later.
Great. Just last one from me. You talked about expansion into other form factors. Can you just indulge us? Are these sort of handheld form factors or perhaps something much, much larger?
Yeah. It's something that we've demonstrated at Mobile World Congress and other places that really our platform is screen agnostic. We focused on smartphones just because that's the largest opportunity. What we're seeing now is a lot of inbound interest. It's not us going out trying to create outbound. It's inbound coming to us to say, "Hey, can you work on these different screens?" Whether these are large tablets or wearables or televisions or what have you, people are interested in how they can use our mobile delivery platform to help them with these other screens. We're spending some time right now making some investments on how we could do that. Then as your opportunity to do start looking and sharing things cross-screen.
In other words, you could be on a television watching the Golf Channel and see a golf app come up and have that golf app delivered directly to your phone, things like that that we've seen some inbound interest from. Those are things that we're investigating, not anything for the very near term for the next quarter. As we think about the growth opportunity for the business, it's definitely something that's encouraging and exciting.
Thanks. Appreciate it.
The next question is from Sameet Sinha of B. Riley FBR. Please go ahead.
Hey, guys. This is Lee Krowl filling in for Sameet. Thanks for taking my questions and congrats on getting the Verizon deal inked. First question, I just wanted to dig in. During the quarter, you guys kind of cited a weak performance from a marquee product launch. That same customer announced a new product for the current quarter. Just kind of curious what kind of expectation you have for that device in light of the last quarter's kind of tepid performance as it relates to revenue guidance.
Yeah, I'll take that one. We've obviously considered how the S9 device performed last quarter in our guidance. It was not a strong launch. I think we've been rather conservative. We do expect, we have data on how it performed last year. While we think that it could be an exciting opportunity, I think we've been prudent in our guidance here and factored in how the most recent launch has performed.
Okay. Switching over to RPD performance. I know you guys said that it was around $2. Just kind of curious what the drivers behind the jump is, whether it's brand driven or maybe just one-time event. Just kind of curious because it is such a large jump in a single quarter.
Yeah. Our commentary was really about it went from $2 in the U.S. compared to $1, I believe $1.32 a year ago in the same quarter. It's driven by 2 factors. One is just increased demand from advertisers and advertisers seeing a positive ROI from using the Digital Turbine platform. I referenced in my remarks about how there's diminishing returns on platforms like Facebook and Google, and we're seeing a number of advertisers like the Bank of America and Yelp and eBay and others. They're saying, "Hey, my incremental dollars are better spent on Digital Turbine than spending more money on those other platforms." That helps us accrete results, is variable number 1. Variable number 2 is we've been able to expand our slots with AT&T and a couple of other providers. That obviously adds us an incremental revenue opportunity.
The combination of those two things is helping drive the improved performance. I really want to reiterate that that's a fundamental health metric of our business, that advertisers are willing to spend and continue to spend more to be on the home screen. That's something I encourage investors to continue to look at as far as our performance goes.
Got it. It's very clear that North America is doing really well, and it seems like that's a little bit offset by international, and we would read that to mean that perhaps India is still maybe a headwind. Thoughts on when maybe India and a few other geographies can maybe snap back and start to contribute to growth?
Yeah. I'm encouraged in India with both the new OEM deals that we've announced, as well as we expect to see Reliance Jio, that had initially launched with a smartphone and they moved to really low-end feature phones, transition back to smartphones. Again, I think that'll really help jumpstart that relationship for us going into the future. We continue to be pretty bullish on India. With that being said, we still have some work to do in terms of how we scale our international demand. That's a major focus area for the business right now, which is a combination of us adding additional local salespeople on the ground, doing partnerships. I referenced Oath as an example, but other advertising agency partnerships, and then leveraging our global inside sales force for the long tail of apps.
That's really the factor to get a better reach in that particular market as well as Asia-Pacific more broadly. We've got some wood to chop to get where we need to be, but we're excited about it because that's where the growth is. For most of our Asia-Pacific and Latin America and European accounts, the margin structure is also favorable. It's a major focus area for us.
Got it. Thanks, guys.
If you have a question, please press star, then one. The next question is from Ilya Grozovsky of National Securities. Please go ahead.
Hi. Thanks, guys. Just wanted to kind of go through the gross margins a little bit more. If you had the contract that you will have going forward for the next several years with your largest customer, had you had that in this current quarter, what do you think gross margins would have been like in the current quarter, given the volumes that you did?
Yeah. Just to re-emphasize what Bill outlined as far as the proposed terms in the agreement. The existing level of revenue volumes would be at kind of the current gross margins that we're seeing today in the quarter. What the contract would allow us to do is when we drive incremental revenue at certain levels with new products or even if we're driving core revenue upwards of levels close to where we are today, those would accrete margins. Based on the volume today, we would, with the new contract, have similar gross margins.
That leads me to my next question, which is, given how big your largest customer is and where your gross margins have trended over the past several quarters down to the low 30s here in the current quarter, wouldn't that be offset by the new customers that you have and plus the higher margin new products that you have in terms of the incremental growth is really from those guys, right? You're continuing to reduce your largest customer, your dependence on the largest customer. I think last quarter you were down below the 50% level. Shouldn't the gross margins be helped by the non-largest customer contribution?
They would be. One other thing that's important to understand is the product mix and whether it's a licensing or it's a rev share, the product mix has a lot to do with it as well as the partner mix. While we've seen our largest partner make up less of a concentration, we also have partnerships that have similar structures to revenue sharing that we have with Verizon, the contract Bill just outlined, whereby as their volumes increase, they get a higher revenue share. One of our fastest-growing, as I mentioned in the call, one of our fastest-growing partners had a kind of higher revenue share this year versus last year, and you see that as we grow over that year-on-year. The other thing is, depending on the particular product and who it's launched with, it could either accrete or compress margins.
In this quarter, I referenced in my comments around the gross margins that we launched a product that had margins below the aggregate for this particular product and for this particular partner. That impacted margins in the quarter.
Thank you.
The next question is from Jon Hickman of Ladenburg. Please go ahead.
Hi. Congratulations. I want to add my congratulations to the Verizon team too. Barrett, I have a question about operating expenses. As you transition the discontinued operations to their new owners, you seem to indicate that there was further reduction in particularly the SG&A area. Is that true?
Well, I don't think I indicated that today on the call. What we do see is because of the way we've recognized our expenses, where we break out our continuing operations and our discontinued operations. We have, and I mentioned in the call that we've reduced our cash expenses, our cash OPEX, as we call it, for our continuing operations. We will evaluate our SG&A and the requirements to support just the O&O business ongoing. Right now, I wouldn't outline any significant declines in our overall SG&A in the near term.
Okay. Thank you. All my other questions have been asked and answered. Thank you.
The next question is from Michael Solomon of Maxim Group. Please go ahead.
Hey, guys. Congratulations on the Verizon deal, and thanks for taking . The margin question was answered. Bill, this is probably more of an opinion question, it seems like you've been able to hand these carriers business that basically carries no cost for them, and now you're handing some social media companies the same opportunity. I'm struggling with the market cap and where the stock is traded. Based on your progression and what you're doing, something doesn't make sense. Do you get a feel for why that's happening, or what the carriers are saying? Can we get a bigger piece of the puzzle when you sign some of these deals going forward?
Sure. Thanks, Mike. Appreciate it. I can't comment on the stock. I guess if I had a crystal ball and I knew what was going on with the stock, I wouldn't be doing this job. I'd be doing a different job. I'm a TMT and mobile person, and I've got a lot of experience and expertise on that. So what I'd say is that we're just going to continue to execute. We think we've got something pretty special here. The franchise value of what we've built with all of these deals around the globe is something we're proud of. We think we've put ourselves in a really great position for the future. Now we've got a platform. As we add devices and we add products and we add all these advertising partners, those are things that should enable a real scale and real exponential growth.
Those are things we're excited about. That's why we're here, and we're going to continue to grind it out and execute on that. My belief is that markets may not get it right in the short term, but in the long term, they will. We're going to continue to grind it out and focus on the strategy that we're excited about. At some point, the market should be paying attention to that.
Okay. Sounds good, thanks.
This concludes our question and answer session. I would like to turn the conference back over to Bill Stone for closing remarks.
Thanks, all. Appreciate everyone joining the call today. We'll be back in touch at our next earnings call later this year. We'll keep you apprised of our progress. Thanks, all. Have a good night.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.